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- Dealsletter Issue #9: Spotlight on High-Cap Properties from San Francisco to Austin
Dealsletter Issue #9: Spotlight on High-Cap Properties from San Francisco to Austin
Dive into the Ninth Edition of Dealsletter: Where Opportunity Meets Investment Insight
Kevin
November 20, 2023
Welcome to the ninth edition of Dealsletter! As we forge ahead, our quest to find exceptional real estate opportunities continues to thrive. In this week’s edition, we've handpicked a selection of standout properties that promise both potential and profit. Tailored for investors of all stripes, these listings are ready to spark your next big venture. Dive in and discover what we've uncovered for you this week!
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🚨 Note on Numbers: Our insights are based on a 25% down payment and the current interest rate of 8.01%. We crunch the numbers so you can focus on the deals.
This Weeks Deals 🏘️
Multi-Family in Austin, TX
Cap Rate: 5.14%
Multi-Family in San Francisco, CA
Cap Rate: 7.88%
Short Term Rental + Multi Family in Tampa, FL
Property: 6515-6517 Dimarco Rd, Tri-Plex
Cap Rate: 8.37%
Multi-Family in Oakland, CA
Property: 1762 Goss St, Turn Key Duplex
Cap Rate: 7.8%
Special Deal: Office to Residential Conversion in San Francisco, CA
Property: 1990 Lombard St
Multi-Family
$1,050,000
6 Unit Apartment Building
Why this is a good investment 👉🏼 : This property offers an attractive investment opportunity due to its below assessed value and below average price per unit in Austin. With a current rent roll of $7,196 per month and potential for rental income increase, it provides the potential for a steady cash flow. Additionally, the property's 100% occupancy and desirable unit mix make it a promising investment in the market.
The Stats 📝
Cap Rate: 5.14%
100% Occupied
Current Rent Roll: $7,196 (Market: $7500/mo)
GRM: 11.67
Multi-Family
$2,250,000
6 Unit Apartment Building
Why this is a good investment 👉🏼 : Check out this investment gem in NOPA: a fully leased building with an impressive 7.88% Cap Rate, offering remarkable cash flow. This property features a mix of 1bd, 2bd, and 3bd units, each with separate meters, leading to low operating expenses. Its Victorian charm, proximity to Divisadero, and nearby Panhandle and Golden Gate Park, make it an attractive and practical choice for investors seeking solid returns in a desirable location.
The Stats 📝
Cap Rate: 7.88%
Gross Rental Income: $221,472
Operating Expenses: $17,470
NOI: $177,459
Unit mix: 1bd, 2bd, and 3bd units.
Short Term Rental + Multi Family
$1,199,000
Tri-Plex
4 income streams on this property. Current owners are Superhosts with AirBnB.
Why this is a good investment 👉🏼 : This multi-family opportunity offers a unique 8% cap rate, making it a lucrative investment. With a completely renovated main house, two additional rental units, and a popular houseboat, it provides multiple income streams. Located in a great neighborhood and allowing for short-term rentals, this property offers versatility and potential for high returns.
The Stats(Pro Forma) 📝
Cap Rate: 8.37%
Annual Gross Income: $125,572
Operating Expenses: $11,240
NOI: $100,332
Strong Cash Flow Potential
Multi-Family
$899,000
Turn Key Duplex
This property sees the strongest value in renting to section 8 tenants as Oakland pays well above market rent
Why this is a good investment 👉🏼 : Renting out this property to Section 8 tenants in Oakland can be advantageous due to the higher rental rates that the program offers. The Oakland housing authority often pays well above market rents for Section 8 properties, which can provide a stable and reliable income stream for landlords. This financial incentive is designed to encourage landlords to participate in the Section 8 program and provide affordable housing options for low-income individuals and families. By renting to Section 8 tenants, you can not only secure consistent rental payments but also contribute to the community by offering affordable housing opportunities.
The Stats (Section 8) 📝
Monthly Gross Rent: $8588
Cap Rate: 7.8%
Operating Income: $7729
NOI: $5857
Rent per unit with section 8: $4294
Special Deal!
Office → Residential
$3,600,000
Strong potential to turn into residential housing
Why this is a good investment 👉🏼 : Ready for a real estate home run? The office building at 1990 Lombard Street in SF's upscale Cow Hollow/Marina area is a steal at $3.6 million, way below market value. Picture turning this three-story gem into a sought-after multi-family home, just steps from The Presidio and Fisherman's Wharf. It's an investor's dream in a foggy city!
About the area 📝
Rents are 20% above market.
Avg household income is $164,000.
92% graduated high school.
84% pursuing higher education.
Potential for joint development with 189 Magnolia Street next door.
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What’s Brewing at Dealsetter ☕️
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